The daily chart is still being hammered with downside pressure, but the indicator is in an over extended area of the chart and it is trying to turn up. Price is currently oscillating around PO2, the 10.39 level. I seems to have found temporary support here. The target price for the move down should be 9.71. For price to move higher it would have to go through 10.94 and then the first price objective, P, at 11.88. Any upside move could run into resistance at 10.66 and 10.88. This analysis is based upon the daily chart only. Ira
COMMENTARY for Saturday
Rick's Picks for Sunday
The chart shows that there are three different cycles at work on this daily chart. There is currently upside pressure being applied to price. You will note that price found support at each of the price objectives for the move down in red. It also found resistance at the first price objective, P, noted in black. The short cycle in blue indicates that price could find resistance at P, 33.18 and then at the next two price objectives for the up move. At this point the down move has not been voided. The target price for the major move higher, not shown, is 40.14. This analysis is based upon the daily chart only. Ira.
There seems to be question with gold at this level. The pressure indicator is over extended and it is trying to turn higher. There is divergence at the lows right now which indicates that the internals for gold are stronger than price indicates at this time. The second price objective for the move down is at 886 and it doesn’t appear that price will reach there on this leg down. For price to make a new run at 1000 it would have to go through 935.50 and then the first price objective, P, would be 966. A short cycle retracement higher could start with price movement above 918 and then the resistance levels would be 931, 945 and finally 958. If this this takes place then there could be a retracement down before the 966 is reached. Price would have to go through 950 to void the current down move. All upward price projections are based uon the current low at 904.80
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INTRADAY TRADING NOTES for Sunday
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Rick’s Picks Weekend Edition
by Stephanie DeMaria on July 11, 2009 12:01 am GMT
Just Jitters, or is the Bear Back?
Taking their cue from our cautiously optimistic, if factually challenged, Fed chairman, mainstream purveyors of news have been spewing propaganda for months about a “recovery” in the second half. But do investors actually believe this poppycock? We never would have imagined so, at least not before Thursday. But when the broad averages plunged on weak payroll numbers released ahead of the holiday, they buttressed the…
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Lower Bullion Prices Worth Your Patience
We told you last week to wait for better prices if you’re planning on buying gold bullion. That is still the case, although it looks like it may not be long before the promised bargains arrive. A week ago, with Comex August Gold trading for around 824, we projected a minimum downside target of 899; yesterday the futures settled at 924.60 after making a two-week low at 920.30 . Lest you get the impression that gold sat still in the interim, we…
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On Foundation of Lies, Recovery Is Impossible
Gold continues to hang tough in the midst of oil’s nasty selloff. Although August crude has fallen more than 14%, from last Tuesday’s peak of $73.38, a Comex Gold futures contract expiring the same month lost just 2.5% of its value during the same period, falling from $947 to $924. The fact that gold has not plummeted in sympathy with oil strongly hints that it will be quite feisty when selling in the oil pits finally lets up. It was triggered by fears that the alleged global economic recovery is much weaker than had been thought. One might have expected investors to be prepared for this turn of events, but apparently…
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Why Most Investors Fall Short
(The following commentary was written by Chuck Cohen, one of the smartest investors we know. After this three-part series ends on Monday, Chuck will be contributing to Rick’s Picks on a regular basis, focusing in particular on opportunities in junior gold stocks. RA)
When choosing a home, a car or even a vacation, most of us will research and reflect for weeks. We will gather material, discuss it with our friends and family, and eventually come to an informed decision. But when it comes to our finances we can be strangely nonchalant and careless. Instead of applying the same thorough diligence to investments, we tend either to passively follow the opinions of the mainstream media or hand over our…
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Why Does Gold Get No Respect?
(The following is the second part of a series of articles by Chuck Cohen, one of the smartest investors we know. After the series concludes on Monday with ”Gold as Insurance,” Chuck will be contributing to Rick’s Picks on a regular basis, focusing in particular on opportunities in junior gold stocks. RA)
Even after the recent rally, the stock market is still down about 35% since 2000, while the price of gold has risen almost 400%. It seems logical, at least to me, to expect investors to have become a little intrigued towards gold. But strangely, that hasn’t been the case. Inexplicably, the long-term view towards stocks remains remarkably upbeat, as though the alarming problems of the past two years have vanished. Just look up the very recent Barron’s “Big Money Poll,” or read the comments of the same economists who never…
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